Review by Member of GMHBA Private Health Insurance

GMHBA Low Cost Quality Private Health Insurance

I’ve been a GMHBA private health insurance member since 2004 and in this review I describe why I think they’re the best low cost quality private health fund in Australia.

Geelong Medical and Hospital Benefits Association was established in 1927 by a group of Victorian workers to protect themselves, their families and their workmates from unexpected medical expenses.

Many years later the fund has changed it’s name to GMHBA because it has members around Australia – but it still operates the same way – as a mutual, not-for-profit private health fund providing low cost, high quality medical insurance.

Not-for-profit Health fund = Low Cost Quality Private Health Insurance

Traditionally most of the Australian private health insurance consisted of not-for-profit funds like GMHBA. However over the last few years several not-for-profit funds have listed on the stock market becoming commercial funds interested more in making profits and increasing their share price than in providing low cost health insurance to members.

If you’re considering joining GMHBA you’ll be glad to know that they surveyed all members in late 2007 and decided to stay not-for-profit because:

GMHBA membership card

  • 82% of members preferred GMHBA staying a not-for-profit mutual health fund
  • By remaining not-for-profit GMHBA saved paying $4.85 million in taxes in 06/07 which saved members $66 on average in reduced membership fees.
  • These are examples of what members said: “I’m not in a health fund for profit”, “I’d prefer to tradeoff a lower premium than have a dividend”, “Now that I think about it, I don’t want shares – I want the service I get now”
  • GMHBA’s average cost/member is 12.8% lower than other private health funds

As further independent proof of GMHBA’s value, in August 2007 Australia’s leading consumer magazine invited 38 Australian health funds to participate in a hospital health insurance comparison and basing their ‘Best Buys’ on: price, conditions, restrictions and benefits GMHBA won more ‘Best Buy’ mentions than any other health insurance fund for the second year running.

There were 90 health funds in the early 1970’s and nearly all the rationalisation took place between not-for-profit funds. The difference this time is individuals may appear to be seeking to get rich quick and putting profit ahead of people and principle…

Jonathan Crabtree – Executive Manager, GMHBA Health Insurance commenting on my article “Free Compare Private Health Insurance – Get Lower Premiums”

I recommend GMHBA Low Cost Quality Private Health Insurance – run for people, not for profit

7 thoughts on “Review by Member of GMHBA Private Health Insurance”

  1. This video on Youtube by GMHBA Executive Manager Jonathan Crabtree provides some useful insights into the Australian private health insurance sector

  2. Note: AustralianSuper members are eligible for a further 7% discount to GMHBA’s already low private health insurance rates if they join GMHBA through the Super Members Health Plan

    Similar discounts may also be available to members of these other Industry Super Funds: Asset Super, CARE Super, HESTA and Westscheme. Contact GMHBA for details

  3. Hi Neerav,

    Great post – inspired me to also do a blog post on Health Fund Comparisons also

    Cheers mate, and all the best with the site – am enjoying!

    EDITOR: Very interesting …

    Looked at your linkedin profile and you did the undergrad version of the postgrad course i’ve almost finished at UTS

  4. Hey Mate

    Don’t you think that this is the time to change your theme now. I mean this one is less attractive. Although there is no doubt that your blog keep giving us fresh content and I think that’s forcing us to come again and again.

  5. Hi, I am thinking of joining my family and I to GMHBA, what are they like as a health fund. Being not for profit is great but do they deliver the services like some of the other majors?.

    EDITOR: the Connect Rewards Plus loyalty program gives you credit for how long you’ve been a member and you can use that credit to reduce or eliminate out of pocket expenses

    In terms of services its just like any other healthfund eg: swipe your card at the dentist and you get instant payment

  6. Back in the good old days when health cover cheap and education was free.. where are those days now? GMHBA actually looks like a good alternative for knowing that it’s run to profit members. The last thing we want is to be like the US healtcare system where the cost of insurance is out of reach for many people.

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